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Zip Code 10804: Million-Dollar Homes and Declining Rents in New Rochelle, NY
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 10804, located in New Rochelle, New York, has experienced significant changes in homeownership rates and property values over the past decade. This area, known for its suburban charm and proximity to New York City, has seen a notable shift towards increased homeownership and rising property values. The homeownership rate in zip code 10804 has shown a strong upward trend, increasing from 91% in 2013 to 94% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $684,948, which rose steadily to reach $921,721 in 2022, representing a 34.6% increase over this period. The trend suggests a strong correlation between rising home values and increased homeownership rates in this area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 10804. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the high homeownership rates observed during this time, as they made mortgage financing more affordable for potential buyers. The sharp increase in interest rates in 2022 to 1.68% did not immediately impact the homeownership rate, which remained high at 94%.
While homeownership rates increased, the percentage of renters in zip code 10804 decreased from 8% in 2013 to 5% in 2022. Interestingly, despite the declining renter population, average rent prices saw a significant increase. The average rent rose from $1,335 in 2013 to $2,852 in 2022, a 113.6% increase. This substantial rise in rent prices, coupled with the decreasing renter population, suggests a trend towards high-end rental properties in the area.
In 2023 and 2024, the housing market in zip code 10804 continued to show strong growth. The average home price reached $997,685 in 2023 and further increased to $1,052,909 in 2024, representing a 14.2% increase from 2022 to 2024. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. The continued appreciation in home values, even in a high-interest rate environment, indicates strong demand and resilience in this local real estate market.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years. Average home prices are projected to potentially reach $1.2 million by 2029, while average rent prices could approach $3,500 per month. These predictions are based on the consistent growth patterns observed in recent years and the area's sustained attractiveness to homebuyers and renters alike.
In summary, zip code 10804 has demonstrated a clear trend towards increased homeownership, rising property values, and escalating rent prices over the past decade. The area has shown remarkable resilience in its real estate market, with home values continuing to appreciate even in the face of rising interest rates. These trends, combined with the projected future increases in both home and rent prices, suggest that 10804 remains a highly desirable and potentially lucrative area for real estate investment and homeownership.
